|Last Quarterly Update:||3/13/2017|
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Companies in this industry distribute new and used tires and tubes for passenger and commercial vehicles. Major companies include American Tire Distributors and TBC Corporation (both based in the US), as well as Bond International (UK), Dynamic Tire (Canada), and PPC Asia (Philippines).
Worldwide tire shipments are expected to increase by 4.3% per year through 2017, to 2.9 billion units, according to Freedonia Group. Demand is expected to be strongest in the Asia/Pacific region, particularly China, where the use of motor vehicles is increasing.
The US tire wholesaler industry includes about 2,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion. Manufacturers' sales branches are included in the industry.
Demand depends on consumer income and vehicle miles driven. The profitability of individual companies is linked to merchandising and marketing. Large wholesalers have economies of scale in distribution, support of national accounts, and advertising and promotion. Small companies can compete by specializing in types of tires or applications (such as for farm equipment or motorcycles) or by offering superior service and support. The US industry is concentrated: the 50 largest companies generate about 70% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Tire wholesalers sell new replacement automobile tires (60% of revenue); new replacement truck, bus, and industrial tires (25%); and used or retreaded tires (less than 10%). (Original tires for new cars are sold directly to car companies, called OEMs, ...
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